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Allot Communications Ltd (ALLT)
NASDAQ:ALLT
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Allot
(NASDAQ:ALLT)
Rating:53Neutral
Price Target:―
Allot (ALLT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$322.16M
Dividend YieldN/A
Average Volume (3M)729.31K
Price to Earnings (P/E)―
Beta (1Y)1.37
Revenue Growth4.74%
EPS Growth94.70%
CountryUS
Employees523
SectorTechnology
Sector Strength92
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.03
Shares Outstanding44,744,392
10 Day Avg. Volume582,279
30 Day Avg. Volume729,309
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.93
Enterprise Value/Revenue3.20
Enterprise Value/Gross Profit4.63
Enterprise Value/Ebitda136.35
Forecast
1Y Price Target
$15.00Price Target Upside106.04% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Allot Business Overview & Revenue Model
Company DescriptionAllot Ltd. provides network intelligence and security solutions to protect and personalize the digital experience in Europe, Asia, Oceania, the Middle East, Africa, and the Americas. The company offers Allot Secure Management platform that includes Allot NetworkSecure, Allot HomeSecure, Allot DNSecure, EndPoint Secure, Allot BusinessSecure, Allot IoTSecure, and Allot Secure Cloud. It also provides Allot DDoS Secure/5G Protect, a solution that offers attack detection and mitigation services; integrated network intelligence solutions; and centralized management solutions, such as Allot NetXplorer for providing a central access point for network-wide monitoring, reporting, analytics, troubleshooting, accounting, and quality of service policy provisioning. The company markets its products through direct sales, distributors, resellers, original equipment manufacturers, and system integrators to carriers, mobile and fixed service providers, cable operators, satellite service providers, private networks, data centers, financial and educational institutions, and governments. Allot Ltd. was formerly known as Allot Communications Ltd. and changed its name to Allot Ltd. in October 2018. The company was incorporated in 1996 and is based in Hod Hasharon, Israel.
How the Company Makes MoneyAllot makes money primarily through the sale of its network intelligence and security solutions to telecommunications service providers and enterprises. The company's revenue model includes the sale of hardware, software licenses, and recurring revenue from maintenance and support contracts. Allot also generates revenue through its security-as-a-service offerings, which provide ongoing network protection and management. Key revenue streams include direct sales to telecom operators, ISPs, and large enterprises, as well as strategic partnerships and collaborations with technology vendors and service providers to integrate Allot's solutions into broader service offerings.
Allot Earnings Call Summary
Earnings Call Date:Aug 14, 2025
(Q2-2025)
| % Change Since: -8.43%|
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
The earnings call highlights significant growth in Allot's SECaaS offerings and overall revenue, along with strategic partnerships and a strong financial position. Despite the challenges of long sales cycles in the telco market, the company's strong performance and strategic wins suggest a positive outlook.Q2-2025 Updates
Positive Updates
SECaaS ARR Growth
SECaaS ARR was up 73% year-over-year, reaching $25.2 million, contributing over 1/4 of revenues for the first time.
Overall Revenue Growth
Allot reported a 9% year-over-year overall revenue growth with improved margins, profitability, and solid operating cash generation.
Verizon Business Partnership
The launch of Verizon Business's My Biz Plan contributed meaningfully to results, offering Allot's cybersecurity protection as a default. This partnership represents a significant long-term growth opportunity.
Strong Financial Position
Completed a share offering and ended the quarter with over $72 million in net cash and equivalents, with no debt.
Landmark Deal with Tier 1 Telco
Signed a multimillion-dollar agreement with a Tier 1 telco in EMEA, expected to contribute significantly to future growth over 2026 and 2027.
Non-GAAP Gross Margin Increase
Non-GAAP gross margin in the quarter was 73.4%, compared with 70.6% in the same quarter last year.
Negative Updates
Long Sales Cycles
Large telco deals continue to have long sales cycles, sometimes taking 12 to 24 months or longer.
Company Guidance
During Allot's conference call to discuss the financial results for the second quarter of 2025, the company reported strong performance across several metrics. The SECaaS (Security as a Service) annual recurring revenue (ARR) increased by 73% year-over-year, reaching $25.2 million, and contributed over 27% of the company’s total revenue, which grew by 9% year-over-year to $24.1 million. The company also achieved a non-GAAP gross margin of 73.4%, an improvement from 70.6% in the same quarter last year. Allot successfully strengthened its balance sheet, ending the quarter with $72 million in net cash and no debt, following a $46 million follow-on share offering. The company's SECaaS strategy is propelling growth, with a notable partnership with Verizon Business contributing significantly to revenue. Allot is optimistic about its future, raising its 2025 SECaaS ARR growth expectations to between 55% and 60% and projecting overall revenues of between $98 million and $102 million for the year.Allot Financial Statement Overview
Summary
Allot is experiencing challenges in achieving profitability with declining revenues and negative net profit margins. However, improvements in cash flow and gross profit margins offer some positive signals. The balance sheet shows manageable but increasing leverage, and the overall financial health requires a focus on cost management and revenue growth.Income Statement
Allot's revenue decreased by 1.03% from 2023 to 2024, and the company has been facing a declining trend since 2021. Gross Profit Margin improved to 69.1% in 2024 from 56.56% in 2023, yet the company remains unprofitable with a negative Net Profit Margin of -6.37% in 2024. The EBIT and EBITDA margins improved but are still negative, indicating operational challenges.45
Neutral
Balance Sheet
The debt-to-equity ratio increased slightly to 0.93 in 2024 from 0.84 in 2023, showing a manageable but rising leverage level. The equity ratio decreased to 35.66% in 2024, indicating lower asset financing through equity. Return on Equity remained negative due to consistent net losses, which is concerning for shareholder returns.55
Neutral
Cash Flow
Allot's cash flow improved in 2024, with a positive Operating Cash Flow of $4.83M compared to negative in 2023. Free Cash Flow also turned positive at $2.71M in 2024, reflecting better cash management. However, the Free Cash Flow to Net Income ratio remains weak due to continuing net losses.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 93.45M | 92.19M | 93.15M | 122.74M | 145.60M | 135.92M |
| Gross Profit | 64.64M | 63.69M | 52.69M | 82.91M | 101.05M | 95.84M |
| EBITDA | 2.19M | 2.12M | -55.13M | -22.75M | -7.95M | -2.86M |
| Net Income | -3.69M | -5.87M | -62.80M | -32.03M | -15.04M | -9.35M |
Balance Sheet | ||||||
| Total Assets | 140.34M | 139.64M | 138.16M | 212.95M | 203.41M | 201.60M |
| Cash, Cash Equivalents and Short-Term Investments | 60.13M | 57.86M | 53.05M | 85.35M | 83.97M | 98.00M |
| Total Debt | 46.16M | 46.34M | 41.93M | 44.70M | 8.25M | 4.65M |
| Total Liabilities | 90.34M | 89.83M | 88.40M | 110.98M | 77.41M | 71.45M |
| Stockholders Equity | 50.00M | 49.81M | 49.76M | 101.97M | 126.01M | 130.15M |
Cash Flow | ||||||
| Free Cash Flow | 6.87M | 2.71M | -32.23M | -38.21M | -16.01M | -19.81M |
| Operating Cash Flow | 8.83M | 4.83M | -29.74M | -32.56M | -8.37M | -12.22M |
| Investing Cash Flow | -21.72M | -2.88M | 31.63M | -6.51M | -6.32M | 17.06M |
| Financing Cash Flow | 239.00K | 1.00K | 0.00 | 39.66M | 2.81M | 1.83M |
Allot Technical Analysis
Negative
7.28
Price Trends
8.28
Negative
7.48
Negative
6.71
Positive
Market Momentum
-0.26
Positive
41.38
Neutral
23.65
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALLT, the sentiment is Negative. The current price of 7.28 is below the 20-day moving average (MA) of 7.62, below the 50-day MA of 8.28, and above the 200-day MA of 6.71, indicating a neutral trend. The MACD of -0.26 indicates Positive momentum. The RSI at 41.38 is Neutral, neither overbought nor oversold. The STOCH value of 23.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ALLT.
Allot Risk Analysis
Allot disclosed 44 risk factors in its most recent earnings report. Allot reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Allot Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $1.24B | 25.13 | 24.39% | 1.41% | 11.04% | 18.70% | |
71 Outperform | $4.04B | 318.43 | 2.10% | ― | 35.12% | ― | |
70 Outperform | $1.17B | 25.05 | 5.32% | ― | -2.09% | 76.96% | |
67 Neutral | $4.34B | 52.31 | 10.03% | ― | 20.51% | 12.84% | |
61 Neutral | $35.97B | 6.65 | -7.26% | 1.99% | 8.60% | -7.54% | |
57 Neutral | $6.13B | ― | -32.18% | ― | 23.02% | 21.01% | |
53 Neutral | $322.16M | ― | -2.77% | ― | 4.74% | 94.70% |
* Technology Sector Average
Performance Comparison
ALLT
Allot
7.28
3.95
118.62%
SPSC
SPS Commerce
113.89
-82.11
-41.89%
VRNT
Verint Systems
19.07
-14.10
-42.51%
ATEN
A10 Networks
17.06
3.84
29.05%
CFLT
Confluent
17.38
-4.72
-21.36%
RELY
Remitly Global
18.85
4.62
32.47%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.